Chemical Co. Ltd. produced three chemicals during the month of July, 2018 by three consecutive processes. In each process 2% of the total weight put in is lost and 10% is scrap which from processes (1) and (2) realises $ 100 a ton and from process (3) $ 20 a ton. The products of three processes are dealt with as follows : Process 1 Process 2 Process 3 Passed on to the next process 75% 50% Sent to warehouse for sale 25% 50% 100% Expenses incurred: Process 1 Process 2 Process 3 $ Tons $ Tons Tons Raw materials 1,20,000 1,000 28,000 140 1,07,840 1,348 20,500 Manufacturing wages General expenses 18,520 15,000 10,300 7,240 3,100 Prepare Process Cost Accounts showing the cost per ton of each product.

Chemical Co. Ltd. produced three chemicals during the month of July, 2018 by three consecutive processes. In each process 2% of the total weight put in is lost and 10% is scrap which from processes (1) and (2) realises $ 100 a ton and from process (3) $ 20 a ton. The products of three processes are dealt with as follows : Process 1 Process 2 Process 3 Passed on to the next process 75% 50% Sent to warehouse for sale 25% 50% 100% Expenses incurred: Process 1 Process 2 Process 3 $ Tons $ Tons Tons Raw materials 1,20,000 1,000 28,000 140 1,07,840 1,348 20,500 Manufacturing wages General expenses 18,520 15,000 10,300 7,240 3,100 Prepare Process Cost Accounts showing the cost per ton of each product.

Name: Chemical Co. Ltd. produced three chemicals during themonth of July, 2
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Description: Chemical Co. Ltd. produced three chemicals during themonth of July, 2018 by three consecutive processes. In each process 2% of the total weight put in islost and 10% is scrap which from processes (1) and (2) realises $ 100 a ton and from process (3)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Chemical Co. Ltd. produced three chemicals during the
month of July, 2018 by three consecutive processes. In each process 2% of the total weight put in is
lost and 10% is scrap which from processes (1) and (2) realises $ 100 a ton and from process (3) $ 20
a ton.
The products of three processes are dealt with as follows :
Process 1
Process 2
Process 3
Passed on to the next process
75%
50%
Sent to warehouse for sale
25%
50%
100%
Expenses incurred :
Process 1
Process 2
Process 3
$
Tons
$
Tons
Tons
Raw materials
1,20,000
1,000
28,000
140
1,07,840
1,348
20,500
Manufacturing wages
General expenses
18,520
15,000
10,300
7,240
3,100
Prepare Process Cost Accounts showing the cost per ton of each product.

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